Construction Bonds are a type of surety bond that protects against disruptions or financial loss if the contractor fails to complete a project or fails to meet specific specifications of a contract.
Road and Sewer Bonds Explained Simply
Construction Bonds are a type of surety bond that protects against disruptions or financial loss if the contractor fails to complete a project or fails to meet specific specifications of a contract. Bonds ensure that a construction project’s bills will get paid.
Used widely in the construction industry, a construction surety bond is used as a credit instrument that binds the contractual obligations between all parties. Surety bonds give assurance for financial security by providing owners and developers with the confidence that their contractors will perform according to the terms of the agreement.
There are multiple types of Bonds available, but they all have in common a basic principle of how they function:
Bond Agreements: Tri-Party Contract Obligations:
Commitment from the DEVELOPER to construct the roads / sewers to the Beneficiary’s (Adopting Party) specification and the technically approved design, and the obligation to pay the bondsman for the bond.
Commitment from the BENEFICIARY (Local Authority / Water Company) to the bondsman and developer to adopt the infrastructure once constructed to their approval and all associated obligations satisfied.
Commitment from the BONDSMAN (Insurer) to pay for any outstanding or unsatisfactory works if the developer defaults on their obligations within the agreement.
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Compariqo can quote you on a range of construction bonds. Whether you need a performance bond to provide assurance that a contractor will perform his obligations under the agreement, a payment bond to guarantee payments to workers and suppliers or a bid bond to protect project owners, we can find the right cover for you.
Road and Sewer Bonds
(also known as Section 38) and Sewer Bonds (known as Section 104).
Give purchasers peace of mind knowing that their deposit will not be lost.
Ensure cash flow is there when its needed.
Guarantee that work will be carried out to a satisfactory standard in accordance with the contract of works.
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Regalia Homes Kent Ltd
“From our first contact Compariqo’s communication was excellent. Their requirements were clear and precise and our reply’s actioned immediately, resulting in the issue of a new home warranty, problem free.
Scott was always professional yet friendly, and should the need arise we would not hesitate to use their services again.”
“I approached Compariqo as they offer a broader choice in the market place when it comes to structural warranties. The service was fast and efficient and I would recommend them to other companies needing to source a structural warranty for a new development.”
Developer, Taunton, Somerset
“After struggling for weeks with numerous brokers to find a provider for my structural warranty policy, Alex and Compariqo took complete control of the situation and sourced me a policy which enabled me to complete my remortgage. Alex in particular was excellent and kept me updated regularly. I would highly recommend Compariqo!”
“I used Compariqo after being let down by another company. Alex Flexman dealt with all my enquiries and helped me constantly through all aspects of the service. He was extremely helpful and very professional throughout the process. I would highly recommend Alex and Compariqo to any of my associates needing structural warranties.”
“If you are looking for a one stop shop solution to out of the box and standard borrowing then Compariqo Finance covers it all. Where other lenders have tried and failed Compariqo Finance will find a solution. The level of service from Thomas Naidu and colleagues is second to none. I am so grateful for their effort in finding a bespoke lender, and never gave up until we found what I needed for my complex situation. I have never had such a good experience in 25 years in the business. Thank you so much.”
“I contacted Jacqui to compare quotes on warranty companies for the conversion of the existing house into three flats. The flats all have separate entrances and the basement level has a lightwell. I found Jacqui to be very forthcoming with information, updating me regularly with correspondence she had received from the warranty companies and a delight in general to talk to. We now go to compariqo for comparisons for all warranty companies on any new developments we have coming up.”
Wow thank you for sorting this so promptly. You have saved me a lot of time & anxiety.
CSCL DEVELOPMENTS LTD
Excellent, prompt service and we will definitely be using you again during our next build. Both Steve and myself were impressed from our initial contact with Jaimie through to completion.
Jaimie explained in detail the insurance suitable and immediately emailed the contract for us to read. No sales pressure and responded when answers were required.
So, thank you again to you and your team at Compariqo.
Sandra and Steven Page